An objective look at the reality of today’s economy, our demographics and our income distribution suggests that the current tax debate is terribly misguided.
.. the increasing tendency of Republicans to engage in reverse Robin Hoodism — paying for huge breaks for the wealthy by raising taxes or cutting spending on the poor — in an economy that generates too much inequality before taxes kick in is unjust and terrible policy
.. For Democrats, it means abandoning the notion that we can have everything we want and send the bill to the top 1 percent, and accepting that the corporate tax system is a hot mess that needs repair.
.. But “get it from the rich” can’t be the extent of every Democratic tax plan.
.. private business will provide optimal levels of public goods and services such as education, transportation, health care and retirement security, global protection (both defense and climate), the justice system, labor and financial market oversight, and anti-poverty and countercyclical policies
.. Since 1970, the federal revenue share of the gross domestic product has averaged 17.4 percent, ranging from around 15 to 20 percent. It’s just under 18 percent today. Congressional Budget Office analysis reveals that meeting the promises of Social Security and Medicare would require about 2.5 percentage points more than that by 2027.
That takes us slightly past the upper bound of the historical record, but the extent of our aging demographics is historically unique.
.. Tax reform .. should be revenue positive.